Australia’s border protection agency contracted a company that was later linked to one of the US military’s biggest bribery scandals to provide “gifts and official memorabilia” services.
The US navy and defence forces were gripped by scandal in September 2013 when a Malaysian defence contractor named Leonard Francis, also known as “Fat Leonard” or “Lion King”, was charged over allegations of bribery and multimillion-dollar fraud.
An investigation has ensnared current and former US military personnel, with nine US military officers, including a former admiral, charged last month. Allegations have emerged since the officers were charged of wild parties in which historical memorabilia related to General Douglas MacArthur was allegedly used to perform sex acts.
Allegations are only now emerging about the possible role of Australian personnel, after a US indictment was unsealed that named a mysterious Australian naval officer identified as “AB” who was allegedly recruited to the conspiracy.
The officer allegedly used an email account “Dingo11@cooltoad.com” to communicate classified US navy ship schedules. He served as the Australian navy’s liaison officer on board the USS Blue Ridge between November 2007 and January 2010, and was involved in planning joint exercises between forces.
Leonard Francis’s operations in Australia were extensive, and he had a well-established local company, Glenn Defence Marine (Australia). Similar to its overseas counterparts, the company provided “husbanding” services to naval vessels around the world when they required goods and supplies in ports.
Tender searches show that before the first charges were laid in September 2013 against Francis, his Australian company was awarded a $48,444 contract in 2012 to provide “official gift services” to the former customs agency that is now part of the Australian Border Force.
A spokesman for the agency sought to distance itself from the company. He said the Indonesian fisheries ministry had contracted the company to fuel their vessels in Australian ports, and the agency then reimbursed them for fuel costs.
“The former Customs and Border Protection Service (ACPBS) undertook cooperative activities with the Indonesian ministry of marine affairs and fisheries (MMAF) to combat illegal foreign fishing,” he said.
MMAF contracted Glenn Defense Marine to provide fuel services and, as part of an agreement between both agencies to support the joint patrol programme, ACBPS reimbursed MMAF for fuel purchased while their vessels were in Australian ports.
The provision of fuel under this agreement met the definition of “gift” as outlined in Austender documentation.
The Singapore-based company that was part of Francis’s empire was also contracted directly by Australia’s defence department to provide port services for Australian vessels in Singapore on two occasions in 2008.
The Australian company is now in liquidation. The liquidator’s report to creditors notes it potentially owed up to $3.6m to a range of debtors.
Debtors listed in the creditors’ meeting minutes include the Darwin Port Corporation for $42,805, Gladstone Ports Corporation for $72,225, the Port of Brisbane Corporation for $400,000, the Northern Territory police services for $181,694, the Queensland police service for $215,000 and the waste company JJ Richards for $1,141,333.60.
Some of the classified data disclosed by the US officers may also have contained information about Australian naval and defence missions.
The initial indictment for Francis’s charges alleges that one former US officer, Jose Luis Sanchez, who called Francis “Lion King”, provided batches of internal information to Francis via a secret email account.
The court document alleges: “Updates 1 of 3 included ship movements and schedules for ‘replenishments at sea’, marked and classified as ‘C//REL AUS’ (meaning classified as confidential but releasable to Australia).”
While there could be a number of reasons to classify documents for release to Australia only, one possible reason is that they included information about Australian vessel movements.
To date more than 20 people have been charged as part of the conspiracy alleged by US prosecutors.
Thirteen people, including Francis, have pleaded guilty to some charges. The nine former US military officers charged last month have not yet entered pleas.
It is unclear what action, if any, Australia’s defence department has taken in relation to the allegations levelled against the former Australian navy officer.
The defence department did not respond to requests for comment.
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